Horizon Oil Limited reported Monday that the Hon. Nixon P. Duban, PNG's Minister for Petroleum and Energy has formally notified the Company of the decision of the Papua New Guinea (PNG) National Executive Council (NEC) to approve the Stanley gas condensate development project (Stanley Project), in Western Province in PNG.

In association with its approval of the Stanley Project, the NEC:

has authorized Minister Duban to sign the Gas Agreement with Horizon Oil's subsidiary company, Horizon Oil (Papua) Limited and its fellow licensees*, on behalf of PNG. The Gas Agreement prescribes key rights and obligations of the State and licensees in respect of the Stanley Project, including the project fiscal terms and commitments to local content

has approved the benefit sharing arrangements amongst project area landowners and authorized the commencement by the Minister of the development forum required under the PNG Oil and Gas Act (the Act)

Horizon Oil further advises the licensees have received notification of the Minister's intention to grant a petroleum development license (PDL 10) and pipeline license (PL 10) in respect of the Stanley Project and, in accordance with the Act, Horizon Oil and its fellow licensees have requested the Minister grant such licenses.

The Minister has requested the licensees attend a formal ceremony for signing of the Stanley Gas Agreement April 17. Under the terms of the Gas Agreement, the Minister will grant Horizon Oil and its fellow licensees Stanley PDL 10 and PL 10 within two weeks of its execution. Grant of PDL 10 is the final step to completion of Horizon Oil's sale of 40 percent of its PNG asset to Osaka Gas and will trigger transfer to Horizon Oil of the balance of the sale proceeds plus adjustments of approximately $77 million in total.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Your comments have been received and will be posted after being reviewed. If you have any questions, please feel free to contact us.